Welcome to the weekly edition of What’s Hot In Stock Market News. To help you stay up to date with Shares and Stock Markets, here are some of the news items that caught my attention this week.
What’s New This Week?
Weight Watchers Shares Plunge 25%: Shares in weight-loss firm Weight Watchers plunged 25% after the company announced plans to “resize” in the wake of disappointing earnings. It reported at 47% plunge in profits to $30.8m (£18.4m) in 2013. “While we are confident that we are on the right track to execute a successful transformation, 2014 will be a very challenging year,” said chief executive Jim Chambers.
Rolls-Royce Shares Slump On Warning: Shares in Rolls-Royce fell 13.6% after the aerospace and marine manufacturer warned profits at its defence-aerospace division would fall 15%-20%. Cuts in European and US defence spending are to blame for the expected fall in revenues. Rolls said growth for the whole group would “pause” in 2014 after 11 years of unbroken profit growth.
Cisco Shares Tumble On Weak Sales: Shares in network equipment giant Cisco Systems fell by more than 4% in extended US trading after the company reported a drop in sales and profits. Net income fell 55% to $1.4b (£861m) in three months to January, largely due to a charge over faulty memory chips. Revenue fell by about 8% to $11.2b amid rising competition from rivals such as Chinese firm Huawei.
S&P 500 Logs Its Best Week Of The Year: The stock market closed out its best week of the year on Friday as investors focused on company earnings and brushed off another weak economic report. Campbell Soup climbed after reporting earnings that beat the estimates of Wall Street analysts. Cliffs Natural Resources, a mining company, also jumped after its earnings beat beat analysts’ expectations and the company named a new CEO.
PepsiCo Sticks By Beverages Despite Struggles: PepsiCo plans to hang onto its struggling North American drinks unit , with hopes that the introduction of naturally sweetened , lower-calorie sodas will help revive sales. The company has been under pressure to spin off the business and focus on its stronger Frito-Lay snack unit , most notably by activist investor Nelson Peltz of Trian Fund Management.
Whole Foods’ Shares Fall On Outlook: Shares of Whole Foods Market Inc dropped in after-hours trading Wednesday after the grocery chain reported that its fiscal first-quarter profit and revenue fell below analysts’ forecasts. The Austin, Texas-based grocery chain, known for its organic and natural food offerings, also lowered its earnings projections for the year for the second time on months.
Dow Up 200 After Fed Remarks: Investors liked the steady tone from the new Federal Reserve chief on Tuesday. Stocks rose sharply in the afternoon as Janet Yellen said she would continue the central bank’s low-interest rate policy. The remarks were her first public comments since taking the job last week.
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